EU, India set up fund for investments

In News

European Union (EU) and India on Friday announced the establishment of an Investment Facilitation Mechanism (IFM) for EU investments in India.

Importance of IFM

  • The mechanism will allow for a close coordination between the European Union and the Government of India with an aim to promote and facilitate EU investment in India.
  • Key objectives of paving the way for identifying and solving problems faced by EU companies and investors with regard to their operations in India.
  • IFM will cover new investors as well as those already established in India.
  • The IFM is also going to serve as a platform for discussing general suggestions from the point of view of EU companies and investors
  • IFM would boost and encourage the EU investors to avail the investment opportunities available in India.
  • EU-India aims to oppose protectionism and to work in favour of a fair, transparent and rule-based trade and investment environment.

EU investment

Trade and Investment are key elements of the EU-India Strategic Partnership launched in 2004. Along with being the first trade partner in goods and services, EU is one of the biggest provider of foreign investment in India, with a stock exceeding $81.52 billion. There are currently more than 6,000 EU companies present in India, providing direct and indirect employment to over 6 million people.


Source : The Hindu

GS II : Bilateral, regional and global groupings and agreements involving India and/or affecting India’s interests

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